Treasury Yields Rise as Market Awaits Inflation Reports

US Treasury yields rose on Friday after the release of the latest nonfarm payrolls data, which showed a stronger-than-expected gain in jobs. The Bureau of Labor Statistics reported that the economy added 162,000 jobs in August, far surpassing the estimated 56,000 new jobs that economists had forecasted.

The robust employment report led investors to increase their bets on tighter policy from the Federal Reserve, with two-year yields rising by 4 basis points to 4.37%. The yield on 10-year Treasury notes also increased by nearly 2 basis points to 4.78%, while the yield on the 30-year Treasury bond remained little changed at 5.24%.

Molly Brooks, a rate strategist at TD Securities in New York, noted that 'payrolls kind of just gave us more emphasis on inflation next week.' The market is now looking ahead to next week's inflation reports, particularly the core consumer price index (CPI), which may tip the balance in favor of more hawkish views.